Another claiming SEISS 2 question

[lurkingfromhome]

Not sure about this. On paper my freelance income is the same as last year's from July to the present date. However, I was previously promised a massive piece of work that has now fallen though thanks to covid.

This would have meant that my earnings for this year would have been higher than last year, which was obviously going to be a good thing, more work, good progress in my freelance career etc., but now my income is going to be pretty much the same as last year.

So in one way I have not been adversely affected as my earnings have not decreased, but in another way the expected increase will now not happen. I'm not sure I have grounds to claim and I don't have any evidence of the work being cancelled as I was told during a phone call. DH thinks I should claim anyway and stash the money in a separate account in case they ask for it back but I'm not sure about the morality of claiming at all, TBH. Thoughts?

Yep. Immoral.

Well no, it's not 'moral'is it?

Yes, that's my line of thinking. Just don't think I can do it and will have to hope the big piece of work is back on the cards next year or the one after, really.

I don't understand the replies - if you've had a piece of work cancelled due to covid isn't that exactly the definition of being "adversely affected" by the pandemic? It's not about the exact sum of money you earned this year compared to last.

That was my initial thought, until I read the statement that you could be asked to prove you were adversely affected. I mean, I’m trying to grow a business here but I guess stagnating from one year to the next might not be perceived as adversely affected, since my earnings are not actually down (yet ... still have the last quarter of the year to go). I did the HMRC webinar and they were totally useless when I asked the question.

I would try to get proof from the person who told you over the phone that the work was cancelled due to covid, just a short email or whatever. It really isn't about looking for dropped earnings, that would be unworkable as so many self-employed people have hugely variable earnings. It's about whether you lost money due to covid.

'a massive piece of work that has now fallen though thanks to covid' - you have been adversely affected.

It's not about comparing year on year or amounts or percentages and never has been. If you've lost work you've been adversely affected. There are no specific rules about what records you need to prove you have been adversely affected so any proof of the cancelation of work would be fine.

Equally you don't have to claim the grant if you don't want to but you are entitled to.